UNIT 5:

ECONOMICS

Unit 5 Globalization of Economics

In this unit, you will learn about

economics ---- the study of how

people make their livings, earn and

spend money, trade with one another,

and invest in their future.

Source: Mastering the TEKS in World Geography

Student Expectations:

(9) Economics. The student understands the various ways in which people organize economic systems. The student is expected to:

(A) compare ways in which various societies organize the production and distribution of goods and services;

(B) compare and contrast free enterprise, socialist, and communist economies in various contemporary societies, including the benefits of the U.S. free enterprise system;

Essential Question:

How do different societies around the world meet their economic needs?

Source: Mastering the TEKS in World Geography

Essential Question:

What are the advantagesand disadvantages of each economic system?

Source: Mastering the TEKS in World Geography

UNIT 5 Economics

Terms

economy

Economist

Resources

Natural resources

Products

Human resources

services

Economics

Supply

Demand

Poverty

wealth

economy

the use and management of resources;

the system of exchange of goods and

services.

Source: original

resources

everything available to sustain a society

and run an economy.

So

Source: original

economics

the study of how individuals, businesses,

and nations make things, buy things,

spend money and save money.

.

Source: Mastering the TEKS in World Geography

economist

person who studies economics.

SoSource: Mastering the TEKS in World Geography

natural resources

elements of the economy that come from

the natural environment. Things from

Mother Nature. Example: soil, water,

sunlight, wind, forests, oil

SoSource: Mastering the TEKS in World Geography

goods (products)

the things that people make. examples:

food, clothes, machines, houses, and toys.

SoSource: Mastering the TEKS in World Geography

human resources ( labor resources)

the people factors in the economy.

Example: number of people, physical

strength, intellect, skill, health.

Source: original

capital resources

money or assets put to economic use.

Example: the tools in a factory or the

money to buy the materials to start or run a

business.

Source: The Economist

services

the things that people do for others.

Examples: electricians, carpenters, doctors,

lawyers, teachers, plumbers, hair dressers

and auto mechanics.

So

Source: Mastering the TEKS in World Geography

supply

How much of a resource, good or service

is available. Example: How many doctors

in a town, how many loaves of bread on the

shelf at the store or how much land is

available to farm.

So

Source: original

demand

How much of a resource, good or service

that is wanted or needed by the consumer.

Example: Starving people in a desert need

water and food. Sick people need a doctor.

Women like diamonds…

So

Source: original

poverty

barely having enough resources to survive.

Source: original

wealth

having an abundance of resources.

Source: original

consumption

the using up of goods and services. This

term is also used to describe the purchase

and use of goods and services by

consumers.

Source: Teachers’ Curriculum Institute

developed country

a wealthy country with an advanced

economy. Developed countries have many

industries and provide a comfortable way

of life for most of their people.

Source: Teachers’ Curriculum Institute

developing country

a poorer country with a less advanced

economy. In general, developing countries

are trying to increase their industries and

improve life for their people.

Source: Teachers’ Curriculum Institute

gross domestic product (GDP)

the total value of goods and services

produced in a country in a year.

Source: Teachers’ Curriculum Institute

per capita

by or for each person. A per capita figure

is calculated by dividing the total amount

of something by the number of people in a

place.

Source: Teachers’ Curriculum Institute

capitalism

Source: The Economist

Capitalism is a free-market system built on

private ownership. Owners of CAPITAL have

PROPERTY RIGHTS that entitle them to earn

a PROFIT as a reward for putting their

capital at RISK in some form of economic

activity.

entrepreneur (entrepreneurship)

SoSource: Deardorffs’ Glossary of International Economics

A person who starts a business.

Entrepreneurship The talent, knowledge,

and willingness to engage

in new activities,

especially those that may

result in new kinds of

firms.

TYPES OF ECONOMIES

Traditional economy

Free Market economy

Command economy

Mixed economy

% of income going to taxes:

Source: tax laws.com

SourcesTax Laws.com http://tax.laws.com/tax-brackets

USA.gov http://www.usa.gov/

U.S. Department of Labor http://www.dol.gov/index.htm

Free PowerPoints Mr. Donn http://economics.mrdonn.org/powerpoints.html

The White House Website http://www.whitehouse.gov/

Architects of the Capitol Website http://www.capitol.gov/

United States Department of State http://www.state.gov/

New World Encyclopedia http://www.newworldencyclopedia.org/entry/Civilization

The Economist http://www.economist.com/economics-a-to-z

TEA Vocabulary

Merriam-Webster Dictionary : http://www.merriam-webster.com/dictionary

Yahoo Kids Dictionaryhttp://kids.yahoo.com/reference/dictionary/english/search?query=political+science

Deardorffs’ Glossary of International Economics

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